Chapter 4 Quiz. 9. As far back as 1969, Henry Ford recognized that corporations operate in an isolated environment. True False

Transcription

1 True / False Questions 1. Corporate social responsibility refers to the actions of an organization that target the achievement of a social benefit over and above maximizing profits for its shareholders and meeting all of its legal obligations. 2. Corporate conscience is an antonym for corporate social responsibility, implying that the organization is not a citizen responsible for meeting all of its obligations. 3. Corporate citizenship is an alternative term for corporate social responsibility, implying that the organization is a citizen responsible for meeting all of its obligations. 4. In an economic approach to corporate management a corporation's only obligation is to maximize profits for its shareholders through the provision of goods and services that meet the needs of its customers. 5. From an ethical perspective, Friedman argues that it would be unethical for a corporation to do anything other than deliver profits for which investors have entrusted it with their funds in the purchase of shares in the corporation. 6. Friedman's view of the corporate world supports the rights of individuals to make money with their investments. 7. The social contract approach is a very simplistic model that argues that the corporation only has an obligation to itself. 8. The modern social contract approach argues that since a corporation depends on society for its existence and continued growth, there is an obligation for that corporation to meet the demands of society rather than the demands of a targeted group of customers only. 9. As far back as 1969, Henry Ford recognized that corporations operate in an isolated environment. 10. Organizations that demonstrate a "conscience" beyond profit generation inevitably attract the same amount of attention as organizations that are bottom line-driven. 11. Lay-offs reduce corporation costs and only affect the laid off employees. 4-1

2 12. Transparency is a major trend behind the CSR phenomenon. 13. In the last 10 years, one-third of the planet's resources have been consumed. 14. Many organizations find it difficult to make the transition from CSR as a theoretical concept to CSR as an operational policy. 15. CSR initiatives haven been shown to generate immediate financial gains to the organization after implementation. 16. Corporations merely experimenting with CSR initiatives run the risk of creating adverse results and ending up worse than when they started. 17. Many corporations are now reporting a triple bottom line in their annual reports that includes updates on their social and environmental activities in addition to their bottom line financial performance. 18. The triple bottom line is an effective means of reporting an organization's efforts only if their activities are measurable. 19. It may be easy to make a public commitment to CSR, but actually delivering on that commitment to the satisfaction of your customers can be much harder to achieve. 20. There are four distinctive types of CSR: economic, ethical, altruistic, and strategic. 21. Economic CSR is the purest or most legitimate type of CSR. 22. Altruistic CSR takes a philanthropic approach by underwriting specific initiatives to give back to the company's local community or to designated national or international programs. 23. An organization runs the smallest risk of being perceived as using self-serving behavior when it uses strategic CSR. 24. In contrast to the alleged immorality of altruistic CSR, critics argue that strategic CSR is ethically commendable since these initiatives benefit stakeholders while meeting fiduciary obligations to the company's shareholders. 4-2

3 25. One of the newest and increasingly questionable practices in the world of CSR is the notion of making your operations "carbon neutral." 26. The Greenhouse Gas Association (GHGA) promotes the standardization of carbon trading on a global scale. 27. It is unfair to accuse companies with CSR initiatives of abandoning their moral responsibility to their stakeholders. Multiple Choice Questions 28. implies that the organization is a citizen, responsible for meeting all of its obligations. A. Corporate ethics B. Ethical obligation C. Corporate conscience D. Corporate citizenship 29. are the actions of an organization that target achieving a social benefit over and above maximizing profits for its shareholders and meeting all legal obligations. A. Corporate social responsibility B. Corporate social obligation C. Corporate conscience D. Corporate citizenship 30. implies that an organization operates with an awareness of its obligation to society. A. Corporate social responsibility B. Corporate social obligation C. Corporate conscience D. Corporate citizenship 31. The definition of corporate social responsibility assumes the corporation. A. is operating in a competitive environment B. is committed to a retrenchment strategy C. complies with federal and state legal obligations D. is committed to a moderate growth strategy 32. Which approach to corporate management states that the only obligation of a corporation is to maximize profits for its shareholders? A. Shareholder approach B. Social contract approach C. Economic approach D. Instrumental approach 4-3

4 33. Many companies adopted a policy of only after the surprising public response to issues companies did not previously consider to be part of their business responsibilities. A. social conscience B. instrumental citizenship C. corporate social responsibility D. social contracts 34. Who stated that it would be unethical for a corporation to do anything other than deliver profits for its investors? A. Henry Ford II B. Milton Friedman C. Steve Jobs D. Allen Greenspan 35. In a, a corporate executive is an employee of the owners of the business. A. capitalist, public property system B. socialist, state-owned system C. laissez-faire, public property system D. free-enterprise, private property system 36. Which approach to corporate management is considered simplistic because it assumes that there are no external consequences to the actions of the corporation? A. Shareholder approach B. Social contract approach C. Economic approach D. Instrumental approach 37. By recognizing rather than, corporations must maintain a long-term perspective rather than simply delivering quarterly earnings numbers. A. stakeholders; shareholders B. customers; investors C. community partners; shareholders D. shareholders; stakeholders 38. As early as 1969, it was recognized that corporations. A. actions do not impact their external environment B. do not operate in an isolated environment C. can actually increase their profits by being socially responsible D. have a responsibility to shareholders before stakeholders 39. In the last 30 years alone, we have consumed of the planet's resources. A. 1/4 B. 1/3 C. 1/2 D. 4/5 4-4

5 40. All of the following are major trends behind the CSR phenomenon except: A. sustainability B. globalization C. the failure of the private sector D. knowledge 41. The greatest period of reform in the U.S. produced all of the following, except: A. Unemployment laws B. The minimum wage C. Child labor laws D. Sexual harassment laws 42. Many, if not most, developing countries are governed by regimes. A. dysfunctional B. effective C. efficient D. controlling 43. Many CSR initiatives. A. generate immediate financial gains to the organization B. do not generate long-term financial gains to the organization C. do not generate immediate financial gains to the organization D. generate enough financial gains for the organization to break even 44. Corporations that experiment with CSR initiatives run the risk of creating all of the following results, except: A. employees feel that they are working for an insincere organization B. the public sees the initiative as little more than a token action C. shareholders feel that their organization will deliver bigger profits with their initiatives D. the organization does not see much benefit of CSR and therefore sees no need to develop the concept 45. Corporations pursue operational efficiency through detailed monitoring of their bottom line in all of the following areas except: A. ethical activities B. financial performance C. social activities D. environmental activities 46. Which is the most legitimate type of CSR? A. Altruistic B. Ethical C. Economic D. Strategic 4-5

6 47. If an organization commits to CSR initiatives, then there must be. A. short-term commitments B. both short and long-term commitments C. commitments perceived as real by customers D. real commitments 48. Organizations pursuing a clearly defined sense of social conscience in managing their financial responsibilities to shareholders, their legal responsibilities to their local community and society as a whole, and their ethical responsibilities to "do the right thing" for all their stakeholders follow a(n) initiative. A. altruistic CSR B. strategic CSR C. ethical CSR D. economic CSR 49. CSR encompasses philanthropic activities targeted toward programs that generate the most positive publicity or goodwill for the organization. A. Altruistic B. Ethical C. Economic D. Strategic 50. Which approach to CSR argues that philanthropic initiatives are authorized without concern for the corporation's overall profitability? A. Altruistic B. Ethical C. Economic D. Strategic 51. Southwest Airlines supports the Ronald McDonald Houses with donations of both dollars and employee-donated volunteer hours. This is an example of which CSR? A. Strategic B. Economic C. Altruistic D. Ethical 52. Which of the following is one of the newest and increasingly questionable practices in the world of CSR? A. Risk management and emergency preparedness B. Water conservation C. Greenhouse gas conscience D. "Carbon neutral" operations 4-6

7 53. In November 2006, the Deutsche Bank teamed up with more than a dozen investment banks and five carbon-trading organizations in Europe to create the. A. Carbon Counter Association (CCA) B. Greenhouse Gas Association (GHGA) C. European Carbon Investors and Services Association (ECIS) D. Clean Air Association (CAA) 4-7